en.Wedoany.com Reported - South Korean refiners have increased processing rates and aviation fuel exports, driven by a recovery in crude oil imports from Asian countries and expanded arbitrage opportunities directing exports toward the U.S. West Coast.

According to data compiled by Reuters from trade sources and energy flow tracking firms such as Vortexa and Kpler, South Korea's aviation fuel exports in May likely hit their highest level since August last year. The country exported between 8.67 million and 9.46 million barrels of aviation fuel last month, a sharp rebound from March and April, after refiners failed to adjust strategies in time due to the Middle East crisis. In recent weeks, South Korea's crude oil supply has increased, including from non-Middle Eastern sources and strategic reserve releases, though volumes remain below pre-Iran war averages. The increased supply in May allowed South Korean refiners to boost operating rates and expand aviation fuel exports, which have been the most pressured oil product amid the current supply crisis. A wide premium to the U.S. West Coast and fully open arbitrage windows are also incentivizing South Korea to raise aviation fuel production and exports.

According to Kpler estimates, South Korea's kerosene shipments in May rose 36% month-on-month from April, when exports hit a one-year low. So far this year, South Korea's share of aviation fuel supply in the Asia-Pacific region has increased significantly. Year-to-date, South Korean kerosene accounts for about 30% of Asia-Pacific aviation fuel imports, compared to 23% for the full year 2025. Analysts had already anticipated the rebound in South Korean shipments.

As early as early May, Ivan Mathews, Head of Asia-Pacific Analysis at Vortexa, stated that the rebound in Northeast Asian aviation fuel exports would be led by South Korea, which may increase refinery utilization rates as crude oil arrivals in the country in May are expected to recover to about 80% of pre-war levels. Mathews noted in early May that, combined with favorable aviation fuel and kerosene crack spreads, South Korea's profit-oriented refineries are expected to increase exports in the coming weeks.

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